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Finance: What is a Family of Funds? 6 Views


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Description:

What is a Family of Funds? A family of funds refers to all of the funds managed by an investment firm. These firms offer investors the ability to invest in the family of funds and the investor enjoys the benefits of the diversification that results from this.

Language:
English Language

Transcript

00:00

Finance a la shmoop what is a family of funds? a family, a mutual fund family [Family hugging each other]

00:09

that's what we're talking about here you know that go it's the story of a lovely

00:14

mutual fund yeah alright nevermind sorry here are

00:19

the mama bear income funds yeah filled with dividend stocks and bonds safe [Mama bear bowl tips out dividend and bonds]

00:23

steady reliable and here are the Papa Bear growth funds filled with tech

00:28

stocks and risky things that pay no dividend they traded high multiples too...

00:33

just for your pleasure yeah well he's great when he's sober

00:36

that Papa Bear and happy and not in his kind of market ie bear it makes a high

00:42

multiple stock do bad things all right well then there are the baby bear [Baby bear fund blocks building blocks appear]

00:46

funds aw cutie-wootie shmoody pie, here's a small cap fund young companies sowing

00:52

their oats not exactly certain where to urinate.. yeah we've been there it's a

00:57

not a pretty sight and here's an international fund China, Russia, Latin

01:02

America someday maybe Mars and here's an emerging market fund maybe that's where

01:07

Mars belongs....it's really small but it has big hopes like [Ant appears beside a tree]

01:11

that ant and the rubber tree plant alright we won't sing why do we label

01:15

these funds as being a family well because they all live in the same

01:20

investment management house that house might be called fidelity or capital

01:26

research for the American Funds brand or Franklin funds or BlackRock...Fund families

01:33

usually grew up around one or two successful individual funds that funds

01:38

managers garnered a solid reputation among the people who know on Wall Street [People give thumbs up to fund manager]

01:42

and while they simply tacked on additional funds leveraging the

01:46

superstar fund or two that brought them to the dance

01:49

tons of synergies happen when funds exist under one house shared legal work

01:54

shared research analytics shared portfolio management, duties, shared

01:58

brains, shared distribution compliance 12B-1 fees and more brain pulses a lot of

02:04

brains one house lots of funds if you're a partner in one of them well

02:08

financially it's lots of fund....you know it's like a family family affair [Family sitting in a garden eating food]

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